In This Article:
For Immediate Release
Chicago, IL – January 31, 2025– Today, Zacks Investment Ideas feature highlights Brinker International's EAT.
Buy the Post-EarningsSurge in Brinker International (EAT)?
I've found myself covering Brinker International's stock quite a bit because of its incredible price performance. And here it is, the iconic operator of Chili's Bar & Grille and Maggiano's has now seen its stock skyrocket over +300% in the last year.
Able to crush earnings expectations for its fiscal second quarter on Wednesday, EAT hit new 52-week peaks of $184 a share today.
Brinker's Strong Q2 Results
Continuing an impeccable turnaround that has been primarily driven by improved guest experience and favorable menu pricing at Chili's, Brinker reported Q2 sales of $1.35 billion. Brinker's top line expanded 26% from $1.07 billion in the prior year quarter while topping Q2 sales estimates of $1.24 billion.
Notably, Brinker stated Chili's significantly outperformed the industry with same-restaurant sales up 31% versus a year ago. Brinker's improved operating performance stood out even more with Q2 EPS of $2.80 soaring from $0.99 a share in the comparative quarter and beating expectations of $1.80 by 55%.
Brinker's Positive EPS Guidance
Following its pleasant EPS surprise, Brinker now expects fiscal 2025 earnings in the range of $7.50-$8.00 per share which came in well above the current Zacks Consensus of $6.23 or 52% growth. Based on Zacks estimates, Brinker's bottom line is projected to expand another 14% next year.
Correlating with the extensive rally in EAT, it's noteworthy that the trend of positive earnings estimate revisions has been extremely compelling for Brinker with a 58% increase in FY25 EPS projections since January of last year.
Bottom Line
Following its over-achieving Q2 report, Brinker International stock sports a Zacks Rank #1 (Strong Buy). With the company's EPS guidance coming in above the Zacks Consensus, the trend of rising earnings estimate revisions is likely to continue which could lead to even more upside for EAT.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.